Using an independent expert to support rate and accounting positions
How have we helped utilities as an expert witness?
There are times you will need an independent analysis and voice for electric rate or other approvals before your Board or other regulatory bodies. Here are examples of how we assisted clients with expert witness testimony to support rate and accounting issues:
- Joint owners of a power plant disputed the allocation of administrative and general expenses by the power plant operator in an arbitration matter.
- Wholesale power customers questioned the impact of impairment accounting for retired units on their rates and required testimony before the Federal Energy Regulatory Commission (FERC).
- A utility sought recovery of the construction costs of an abandoned power plant project in its rate base and required testimony before a state utility commission.
- A cooperative defended its industry method of developing revenue requirements before FERC.
- An insurance company required insights and testimony on cost recovery for utility pole accidents in a lawsuit.
- We testified for a utility defending its method for recording power plant decommissioning costs before FERC.
- We assisted a transmission utility with testimony before the Texas Public Utilities Commission, providing an analysis of allocated costs between regulated and unregulated businesses.
Why Use an Expert Witness?
Could these clients have handled these issues adequately without outside help? For the most part, yes. But an expert witness can provide added support to your rate filing, litigation, or arbitration. Their background and experience offer an outside, independent view of industry best practices, plus an unbiased presentation of the supporting facts and standards for your accounting, rates, and other positions.
About Russ Hissom - Article Author
Russ Hissom, CPA is a principal of Utility Accounting & Rates Specialists a firm that provides power and utilities rate, expert witness, and consulting services, and online/on-demand courses on accounting, rates, FERC/RUS construction accounting, financial analysis, and business process improvement services. Russ was a partner in a national accounting and consulting firm for 20 years. He works with electric investor-owned and public power utilities, electric cooperatives, broadband providers, and gas, water, and wastewater utilities. His goal is to share industry best practices to help your business perform effectively and efficiently and meet the challenges of the changing power and utilities industry.
Find out more about Utility Accounting & Rates Specialists here, or you can reach Russ at russ.hissom@utilityeducation.com.
The material in this article is for informational purposes only and should not be taken as legal or accounting advice provided by Utility Accounting & Rates Specialists. You should seek formal advice on this topic from your accounting or legal advisor.